By: Eva Baxter
Crypto exchange giant, Binance, is initiating steps to terminate support for its Binance USD (BUSD) stablecoin. The phase-out will commence from mid-December, with all spot trading pairs involving BUSD getting delisted between December 11th and December 15th. The exchange has also disclosed that spot trading orders and spot trading bot services will be terminated on these dates.
However, the schedule for futures delistings will differ. Users are being urged to withdraw or convert their BUSD into other assets before December 15. Notably, users will be able to convert their BUSD into another stablecoin, First Digital USD (FDUSD), at a 1:1 ratio without any fees. As of December 31st, BUSD withdrawals will be halted, any remaining BUSD balances will be automatically converted to FDUSD. Certain countries will be exempted from this immediate conversion.
This move comes after Binance's issuing partner, Paxos, halted the minting of new BUSD in February, amidst intervention from the New York Department of Financial Services (NYDFS). Despite ceasing issuance, Paxos will continue to offer redemption and support for BUSD at least until February 2024. Currently, BUSD possesses a market capitalization of $1.7 billion, making it the fifth largest stablecoin and the 39th largest cryptocurrency overall.
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